TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether, for the purposes of clause (x) of rule 1 of the First Schedule to the Companies (Profits) Surtax Act, 1964, interest received by a non-resident company from the Indian branches of foreign banks is exempt from inclusion in chargeable profits as income from an "Indian concern".
Analysis: Clause (x) excludes from total income, in the case of a non-resident company without prescribed dividend arrangements in India, income by way of any interest or fees for rendering technical services received from Government, a local authority, or any Indian concern. The qualifying words governing the source of receipt apply to both interest and fees, so the exclusion is not available for interest from every source. The expression "Indian concern" denotes a concern Indian in character, not merely a concern situated in India. A branch of a foreign bank located in India remains part of a foreign concern and does not become an Indian concern merely by its presence in India.
Conclusion: The interest received from the Indian branches of foreign banks did not fall within clause (x) and could not be excluded from chargeable profits. The answer to the reference was therefore in favour of the Revenue.
Ratio Decidendi: For clause (x) of rule 1 of the First Schedule to the Companies (Profits) Surtax Act, 1964, the source qualification applies to both interest and technical-fee receipts, and an "Indian concern" means a concern that is Indian in character, not merely one carrying on business in India.
TaxTMI 
TaxTMI 
